Bitcoin experienced a sharp bounce back, rising from $32,000 to above $38,000, moving towards $41,000. Bitcoin depicts a wild detection to two textbooks bullish repealing: Double Bottom & Falling Wedge.
Series of Double Bottom
Scott Melker, aka “The Wolf of All Streets,” a renowned crypto trader and WOAS Podcast host, emphasized two straight cavities in a trading view chart of Bitcoin specifically in four hours time period, highlighting a medium peak in between referring to a very reciting pattern with repetitive negative aspects rejected by bearish trails. Simultaneously, its stability gets outlined if the asset leaps back from the second cavity to near above the last peak level.
It also transpires to remain the same with Bitcoin during its last Friday rally, directing Scott Melker to see an extended upside rally to complete the Double Bottom strategy. Bitcoin nearly fulfilled the bullish variation target by striking the pink line more to $34,880, as demonstrated in the above chart.
“The pink line [stands] broken, double bottom to be confirmed with a close above,” Mr. Melker noted, nevertheless. “Target around 41K shown. Trading range EQ also broke, should target range highs.”
Falling Wedge Indicting Bullish Reversal for Bitcoin
Falling Wedge, another indication of a bullish reversal, also suggested after the Friday breakout of Bitcoin targets to go beyond $41,000.
It is a bullish chart pattern identified in the technical analysis with an upward tendency following a successive way that takes place during the temporal contraction in the market. Which is interpreted as the opportunity for traders in the quest for potential buying opportunities when the price approaches the upper trendline of the above pattern.
Likewise, the same performance has been encountered in Bitcoin when the cryptocurrency was close to reaching the $36,000 mark recently, history of capping potential gains by the same equilibrium.
Compared to a usual scenario where an asset rises as much as the maximum distance between a Wedge’s upper and lower trendlines, the gap expanded exponentially in Bitcoin’s case to $11,000-wide. Which eventually puts Bitcoin en routing towards $50,000.